Gold surged on Friday, hitting its highest in seven weeks, after an unexpected drop in U.S. nonfarm payrolls for July dashed rate-hike hopes and set bullion on course for its best week in seven months.Spot gold jumped 2.4% to $4,341.69 per ounce by 10:57 a.m. EDT (1457 GMT), having surged over 3% ‌to its highest ⁠since ⁠June 17.Bullion is set to post its largest weekly rise since January 19, with prices ​gaining over 7% so far this week. U.S. gold futures climbed 2.4% to $4,402.20.Nonfarm payrolls in ​the United States decreased by 23,000 jobs last month after a downwardly revised 20,000 increase in June, the U.S. labor department's Bureau of Labor Statistics ​said. Economists polled by Reuters had forecast an ⁠increase of 80,000 ‌jobs."The weaker-than-expected jobs data presents a scenario where the ​Fed is ​going to be less likely to raise interest rates at ⁠its next meeting," said David Meger, director of metals ​trading at High Ridge Futures.Declining energy prices and a potentially reduced likelihood of U.S. interest rate increase portends to a weaker dollar and stronger gold prices, Meger added. [O/R]The rate futures market has now priced in just a 43.9% chance of Fed tightening in September, compared with 57% before the jobs report, according to LSEG data. The probability that the ‌Fed will hold rates next month rose to 56.1% versus 43.2% just before the data release.Lower interest rates make gold ​more attractive relative ​to yield-bearing assets as ⁠bullion does not generate interest.UBS expects gold prices to climb to $5,000 per ounce in the first half of 2027, it said in a note on Friday.On ​the geopolitical front, U.S. President Donald Trump told reporters that he believed the war with Iran would be over soon.Among other metals, spot silver gained 3.4% to $63.54 per ounce, platinum firmed 1% to $1,745.87, and palladium rose 0.4% to $1,376.90. All three metals were headed for weekly gains.